This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Use This Filing to Trade Like Jeff Berkowitz

This column was originally published on RealMoney on March 1 at 3:20 p.m. EST. It's being republished as a bonus for TheStreet.com readers.

I like learning from the stock picks and styles of others. I spent five years studying every aspect of Warren Buffett's approach, and the result was my second book, Trade Like Warren Buffett . I looked at every stage of his career from the 1950s on (hedge fund days, early Berkshire, later Berkshire, his personal portfolio, etc.), and had conclusions very different from the usual value-based books about him. I hope the process made me a better investor, and time will tell.

Along these lines, I like looking at the 13F-HR. These are filings from institutions/funds with greater than $100 million in stock holdings, which are required by the SEC every quarter.

I plan to pick an investor once every so often and do an article based on his 13F-HR filings to get a sense of their approach and a look at their picks.

The first of these efforts will be on J.L. Berkowitz & Co., which filed its latest 13F-HR on Jan. 18. You can read the exploits of the young Jeff Berkowitz in Jim Cramer's Confessions of a Street Addict . If you read only one chapter in the book, read Jim's description of his experiences in September 1998. If you read two chapters, then also read his description of his first week in the hedge fund business. (Jim's hedge fund, Cramer Berkowitz, evolved into Berkowitz & Co.)

I'm not going to go over all the positions (there are more than 100 of them), and I'm going to focus on his largest tech positions, although he has a fair number of positions that are in more industrial areas. On the whole, it seems Berkowitz & Co. goes for tech stocks with the following characteristics.

Great balance sheets: These companies tend to have lots of cash and no debt and decent price over cash multiples when compared with the market in general. For instance, McAfee (MFE), the security-software company, has a $3.2 billion market cap and $1.26 billion in cash with no debt. There's software company Stellent (STEL), with a $318 million market cap and almost $60 million in net cash.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs